More than 10,000 financial adverts and other promotions were withdrawn or changed in 2023 following intervention from the Financial Conduct Authority (FCA), an increase of 17% year-on-year.
During this period, the FCA published 2,285 alerts to help prevent consumers from losing their money to scams, up from 1,800 in 2022.
After being given new powers by the Government, the regulator focused on illegal cryptoasset promotions to UK consumers, issuing 450 consumer alerts between 8th October 2023 and 31st December 2023.
The regulator highlighted its concern at the rise of influencers promoting financial products, including credit and investments on social media, which often targets younger age groups.
This concern regarding the rise of financial influencers was echoed by brokers in the latest Mortgage News Live livestream, hosted by Coreco’s Andrew Montlake, in partnership with MPowered Mortgages, Newspage and The Intermediary.
Despite social media being helpful tool in generating business, brokers expressed fears surrounding its lack of regulation – leading to the potential spread of misinformation to consumers.
Lucy Castledine, director of consumer investments at the FCA, said: “People need clear, fair and accurate information to base their financial decisions on.
“We will continue to intervene and take action when we identify firms not meeting our minimum standards.’
“As of 7 February 2024, authorised firms need permission from the FCA if they want to approve promotions for unregulated persons.
“This makes sure firms approving financial promotions have the required competence and expertise for the promotions being offered.
“This is underpinned by the Consumer Duty which came into force in July 2023.
“The Consumer Duty requires firms to demonstrate that they are providing consumers with information which helps them to make effective and informed decisions about financial products and services.”
